Crowdcube, a leading investment crowdfunding platform based in the UK, has announced the advent of later-stage investments, adjusting its offerings for its 1.9 million investors. The platform states that its first later-stage offering is for Bolt.
Start-ups and early-stage firms make highly risky investments. Most startups fail; that is the way it works. Investors understand the risky nature of backing startups and thus pursue a portfolio of investments. By offering later-stage, pre-IPO investments, Crowdcube is acknowledging that investors also want access to less risky investments. As an online investment platform, the technology is already in place, so including later-stage firms makes a lot of sense.
According to a blog post, the platform is launching Crowdcube Growth Series, a group of later-stage firms that are more mature. Crowdccube states:
“They’re not start-ups or scale-ups, they’re later-stage businesses which are still growing and innovating. For Crowdcube investors, it’s a chance to become co-owners, as well as customers of brands they know and love, and build out positions in late-stage private companies to complement their investments in earlier-stage businesses.”
As in other jurisdictions, private firms strive to remain private for as long as possible due to the onerous burden of becoming a publicly traded firm. By offering later-stage opportunities, Crowdcube should be able to grow its business further.
